To help you prepare for your mid-term exam, I have prepared a list of multiple-choice questions and short essay questions. All the questions refer to concepts seen in the textbook (Basic Marketing). Answers to the questions are also provided. For multiple-choice questions, when you click on any of the letters corresponding to the answer that you feel is the right one, you will automatically be referred to the answers. There you will see the explanation of each answer. For the essay question, click on the appropriate link.

Some questions are likely to appear in the exam, but not all; however, they are sufficiently wide in scope that after having done these questions, you will have reviewed the most important aspects of what we discussed in class so far.

I would appreciate any comments that you have, in particular if you see any bugs.
 

1.    Multiple choice questions

1.    Which of the following is a true statement:
a)    Since marketing is concerned with many thousands of different products, there is no one set of marketing functions that applies to all products.
b)    Responsibility for performing marketing functions can be shifted and shared, but no function can be completely eliminated
c)    From a micro viewpoint, every firm must perform all of the marketing functions.
d)    Marketing functions should be performed only by marketing middlemen or facilitators.
e)    Many marketing functions are not necessary in planned economies.

2.    Based on the following company statements, which company is most likely to be in the marketing era?
a)    "Our sales force was able to sell middlemen more of our new product than they can resell in all of this year".
b)    "Our marketing manager is co-ordinating pricing, product decisions, promotion and distribution to help us show a profit at the end of this year."
c)    "The whole company is in good shape - demand exceeds what we can produce."
d)    "Our long-range plan - developed by our marketing manager - is to expand so that we can profitably meet the long-term needs of our customers."
e)    "Our new President previously led our marketing effort as Vice President of Sales."

3.    Which of the following best explains what the marketing concept means:
a)    Firms should spend more money on marketing than they have in the past.
b)    A firm's main emphasis should be on the efficient utilization of its resources.
c)    All of a firm's activities and resources should be organized to satisfy the needs of its customers at a profit.
d)    A company's chief executive should previously have been a marketing manager.
e)    A firm should always attempt to give the customers what they need regardless of the cost involved.

4.    The difference between "production orientation" and "marketing orientation" is best explained as follows:
a)    there are no separate functional departments in a marketing-oriented firm.
b)    in a marketing-oriented firm the total system's effort is guided by what individual departments would like to do.
c)    production-oriented firms usually do not have a marketing manager.
d)    in a marketing-oriented firm, every department's activities are guided by what customers need and what the firm can deliver at a profit.
e)    all major decisions are based on extensive marketing research studies in marketing-oriented firms.

5.    A marketing strategy consists of two interrelated parts. They are:
a)    selection of a target market and implementing the plan.
b)    selection of a target market and development of a marketing mix.
c)    selection and development of a marketing mix.
d)    finding attractive opportunities and developing a marketing mix.
e)    finding attractive opportunities and selecting a target market.

6.    Which of the following statements about marketing mix variables is false?
a)    "Promotion" includes personal selling, mass selling, and sales promotion.
b)    The term "Product" refers to services as well as physical goods.
c)    A channel of distribution does not have to include middlemen.
d)    Generally speaking, "Price" is more important than "Place".
e)    The needs of a target market virtually determine the nature of an appropriate marketing mix.

7.    When a firm tries to increase sales by selling its present products in new markets, this is called:
a)    market penetration.
b)    market development.
c)    product development.
d)    diversification.
e)    market integration.

8.    A market consists of:
a)    a group of potential customers with similar needs who are willing to exchange something of value.
b)    various kinds of products with similar characteristics.
c)    sellers offering substitute ways of satisfying needs.
d)    all the firms within a particular industry.
e)    both a) and c).

9.    A market in which sellers offer various close substitute ways of satisfying the market's needs is called a:
a)    generic market.
b)    relevant market.
c)    product-market.
d)    central market.
e)    homogeneous market.

10.   Segmenting
a)    is essentially a disaggregating or "break it down" process.
b)    assumes that all customers can be grouped into homogeneous and profitable market segments.
c)    tries to aggregate together individuals who have similar needs and characteristics.
d)    usually results in firms aiming at smaller and less profitable markets.
e)    assumes that each individual should be treated as a separate target market.

11.   "Good" market segments are those which are:
a)    heterogeneous within.
b)    operational.
c)    homogeneous between.
d)    substantial - meaning large enough to minimize operational costs.
e)    all of the above.

12.   Segmenting and combining are two alternative approaches to developing market-oriented strategies. Which of the following statements concerning these approaches is true?
a)    Combiners treat each submarket as a separate target market.
b)    Segmenters try to develop a marketing mix that will have general appeal to several market segments.
c)    A combiner looks at various submarkets for similarities rather than differences.
d)    A segmenter assumes that the whole market consists of a fairly homogeneous group of customers.
e)    Both segmenters and combiners try to satisfy some people very well rather than a lot of people fairly well.

13.   Which of the following types of dimensions would be the most important if one were particularly interested in why some target market was likely to buy a particular brand within a product-market?
a)    Primary dimensions.
b)    Secondary dimensions.
c)    Qualifying dimensions.
d)    Determining dimensions.
e)    Both a) and c).

14.   "Positioning" is concerned with
a)    how current target customers view the products available from one company.
b)    how customers view the competing brands in a market.
c)    an analysis of the design strengths and weaknesses of a product in a market.
d)    the economic factors that affect consumer choices among alternative brands.
e)    None of the above is true.

15.   The recent interest in physical fitness has forced producers of food, clothing, and other products to reconsider their marketing strategies. Which of the following does this trend illustrate?
a)    economic and technological environment.
b)    cultural and social environment.
c)    existing business situation.
d)    political and legal environment.
e)    resources and objectives of the firm.

16.   A small manufacturer has just experienced a rapid drop in sales. The marketing manager thinks that she knows what the problem is and has been carefully analyzing external secondary data to check her thinking. Her next step should be:
a)    conduct an experiment.
b)    develop a formal research project to gather primary data.
c)    conduct informal discussion with outsiders, including middlemen, to see if she has correctly defined the problem.
d)    develop a hypothesis and predict the future behaviour of sales.
e)    initiate corrective action before sales drop even further.

17.   A marketing analyst would not use which of the following research methods when gathering primary data?
a)    Observation.
b)    Experiment.
c)    Mail survey.
d)    Library search.
e)    Personal interviews.

18.   Canada's ethnic groups deserve special attention from marketers because:
a)    their average income is greater than the majority of Canadians.
b)    they may have different needs.
c)    the effects of the melting pot must be overcome.
d)    none of the above.

19.   A change in a person's thought processes caused by prior experience is called:
a)    learning.
b)    attitude change.
c)    belief change.
d)    response.
e)    reinforcement.

20.   Behavioural scientists recognize different levels of consumer problem solving. Which of the following is not one of these levels?
a)    Routinized response behaviour.
b)    Limited problem solving.
c)    Rational problem solving.
d)    Extensive problem solving.
e)    All of the above are recognized levels of problem solving.

21.   Which of the following gives the proper ordering of the stages in the "adoption process"?
a)    Awareness, interest, trial, evaluation, decision, dissonance.
b)    Awareness, interest, trial, decision, evaluation, confirmation.
c)    Awareness, interest, evaluation, trial, decision, confirmation.
d)    Interest, awareness, trial, decision, evaluation, dissonance.
e)    Awareness, interest, evaluation, decision, trial, confirmation.

22.   A manufacturer that has decided to brand all of its products under one label is following a policy of:
a)    dealer branding.
b)    generic branding.
c)    family branding.
d)    manufacturer branding.
e)    None of the above.

23.   Which of the following statements regarding the "battle of the brands" is true?
a)    It is pretty well over as the dealers now control the marketplace.
b)    Middlemen have no real advantages in the battle of the brands.
c)    If the present trend continues, manufacturers will control all middlemen.
d)    Manufacturer brands may be losing ground to dealer brands.
e)    The battle of the brands has increased the differences in price between manufacturer brands and dealer brands.

24.   Which of the following statements about the strategic importance of packaging is false?
a)    A package may have more promotional impact than a firm's advertising efforts.
b)    A new package can become the major factor in a new marketing strategy by significantly improving the product.
c)    Packaging is concerned with both protection and promotion.
d)    Better packaging always raises total distribution costs.
e)    A package should satisfy not only the needs of consumers but also those of business and organizational customers.

25.   The product life cycle has four stages. Which of the following is not one of these?
a)    Market introduction.
b)    Market growth.
c)    Market maturity.
d)    Economic competition.
e)    Sales decline.

26.   Which of the following statements regarding the market growth stage of the product life cycle is false?
a)    Innovations still earn profits - but this stage is less profitable for them than the previous stage.
b)    This is the time of peak profitability for the industry.
c)    The sales of total industry are rising fairly rapidly as more and more customers buy.
d)    Monopolistic competition is common during this stage.

27.   Regarding product life cycle, good marketing managers know that:
a)    all competitors lose money during the sales decline stage.
b)    they are getting longer.
c)    industry sales reach their maximum during the market growth stage.
d)    firms earn their biggest profits during the market introduction stage.
e)    industry profits reach their maximum during the market growth stage.

28.   Marketing managers should recognize that:
a)    product life cycles appear to be getting longer.
b)    every segment within a market has the same product life cycle.
c)    the product life cycle describes the sales and profits of individual products, not industry sales and profits.
d)    firms that enter mature markets have to compete with established firms for declining industry profits.
e)    None of the above is a true statement.

29.   In planning for different stages of the product life cycle, strategy planners must be aware that:
a)    losses can be expected during the introduction stage.
b)    the life cycle of mature product-markets can be extended through strategic product adjustments.
c)    offering the product to a new market segment may start a whole new life cycle.
d)    products can be withdrawn from the market before the sales decline stage - but even here a phase-out strategy is usually required.
e)    All of the above statements are true statements.

30.   Regarding the new-product development process
a)    screening criteria should be mainly quantitative - because qualitative criteria require too much judgement.
b)    concept testing tries to see how the new product works in the hands of potential customers.
c)    it tries to "kill" new ideas that are not likely to be profitable.
d)    market tests should be conducted for all new product ideas before commercialization.
e)    all of the above are true.
 
 

2.    Essay Questions

1.    Discuss the difference between "production orientation" and "marketing orientation".

2.    Explain what is meant by the marketing management process.

3.    Discuss the objectives and key elements of a marketing strategy.

4.    Discuss the four types of market opportunities and give examples for each type.

5.    Give a definition of segmentation. What are the important criteria of a good segmentation?

6.    What are the advantages and disadvantages of a single market approach and a multiple market approach?

7.    Discuss the key dimensions of consumer behavior.

8.    How do social influences affect consumer behavior?

9.    What is meant by the product life cycle?

10.   What does product management involve?